THELOGICALINDIAN - Five US Senate Democrats accept alleged for Facebook to abandon its crypto projects The senators addressed aletterto CEO Mark Zuckerberg on Tuesday aloof hours afterwards the barrage of its agenda wallet in affiliation with Coinbase
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Facebook’s new agenda wallet Novi is allotment of a pilot affairs in the U.S. and Guatemala. The amusing media behemothic aboriginal appear its affairs to access the crypto industry over two years ago with activity Libra. However, afterwards abundant criticism from assembly and regulators, the activity did not continue. The aggregation after rebranded the Libra activity as “Diem,” which is still awaiting release.
With the barrage of Novi, the Senators bidding able action to the activity because “Facebook cannot be trusted to administer a acquittal arrangement or agenda currency.”
The two-page letter came from the appointment of Senator Brian Schatz. Four added senators: Elizabeth Warren, Tina Smith, Richard Blumenthal, and Sherrod Brown, additionally active it.
Senators Push Back
On Tuesday, October 19, Facebook published that users in the U.S. and Guatemala can now assurance up for the pilot program.
In their letter, the senators accent several affidavit for their affirmation on why the aggregation should arrest the crypto projects. Firstly, the actuality that Facebook does not affliction about the abuse that its articles account users.
They additionally referred to 2024, back the company’s Libra activity was questioned and ultimately stopped. “In October 2024, Senators Schatz and Brown wrote to associates of the Diem Association’s predecessor, the Libra Association, and bidding abysmal apropos about the risks the activity airish to consumers and the banking system. Facebook after shelved Libra amidst authoritative scrutiny, but you did not abode our apropos afore resuming this endeavor.”
Additionally, they acicular out a animadversion that David Marcus, arch of Facebook’s Payments and Financial Services, fabricated in the Tuesday announcement. He said that the aggregation affairs to barrage Novi with Diem already it receives authoritative approval.
“Despite these assurances, Facebook is already afresh advancing agenda bill affairs on an advancing timeline and has already launched a pilot for a payments basement network, alike admitting these affairs are adverse with the absolute banking authoritative landscape—not alone for Diem accurately but additionally for stablecoins in general.”
Related Reading | The Head of Diem wants you to assurance Facebook, but is he angry a accident battle?
The letter added mentioned, “In accession to the risks articles like Diem affectation to banking stability, you accept not offered a satisfactory account for how Diem will anticipate adulterous banking flows and added bent activity,”
They assured by advancement Facebook to “immediately abandon your Novi pilot and to accomplish that you will not accompany Diem to market.”
In acknowledgment to the Senators’ letters, a agent for Novi said, “We attending advanced to responding to the Committee’s letter.”
Facebook In Trouble With Lawmakers
The senators, in the letter, cited a acknowledgment Zuckerberg fabricated in 2024 afore the House Financial Services Committee. He said Facebook would not barrage a payments arrangement unless U.S. regulators assurance off.
At that time, Zuckerberg was apropos to Diem, again Libra.
In 2024, assembly were agnostic about Zuckerberg’s Libra project. And they abject him in for a testimony. This audition took abode a year afterwards Facebook’s Cambridge Analytica abstracts scandal.
The contempo Novi criticism from assembly additionally hits afterwards a Facebook whistleblower, Frances Haugen, testified afore the senate. She appear on how Facebook’s articles abuse its users.
